Setting Up a BCA

Before starting data collection and analysis for a BCA, it is essential to establish basic facts of the analysis to help ask the direct the following work. This usually involves defining the following factors:

• • Project description: What will be done? Where? When? How? By whom?

  • Project objectives and impacts: What is the problem or goal that the project is intended to address? What objectives (specific ways to achieve goals) and impacts (benefits and costs, also called evaluation criteria) should be considered in the economic evaluation?

  • Perspective and scope: What are the agency's primary objectives? For whom are benefits being sought? Who will incur the direct and indirect costs?

    • Geographic scope of the analysis: What area will be affected by the project? By its alternatives?

    • Time period of analysis: Over what period of time should projects be evaluated?

  • Defining Alternatives: What is the base case (the conditions that will result if the project is not implemented)? What alternatives will be considered and compared with the project?

  • Project schedule: When will costs be incurred? When will benefits be realized?